LALITH (acCOUNTS OFFICER) (43 Points)
26 December 2015We are manufacturer of TMT Bar(Rolling Mill).Our Integrated SMS Plant is under WIP.Can we utilsie the Cenvat on Capital Goods of SMS towards Removal of TMT Bar.
Yogesh K Shah
(CA)
(30 Points)
Replied 26 December 2015
On a generic note and not covering things in specific,
CENVAT credit rules provides for claiming input on capital goods which is "used" in the factory based on 50% each year Rule 4(2)
In the present case the CG are in WIP condition and not used (whether active or passive the discussion doesn't arise in this case)
Therefore as per my understanding it can be concluded that the input credit in the current case cannot be taken as the plant is in WIP stage
GST Live Certification Course (39th Batch) - April 2024 (Weekend Batch) (With Certificate)
"Live class on Python for Financial Analysis: Unlocking Efficiency in Accounting and Finance"
CAclubindia
